The Goods, January Edition
Welcome back to another year of The Goods—the newsletter from the intersection of social good and strategic communications. In this edition, we look at the new Administration’s recent executive orders and how they impact ESG and DEI.
The Goods is a newsletter for social impact communicators that helps you keep track of the latest updates, trends, industry best practices, and much more. The newsletter is compiled and curated monthly by Jade Floyd, Victoria Dellacava, and Mia Saponara, with help on this edition from Marneé Banks.
The Administration’s Actions on Day One
Within the first minutes, the Administration signed a slew of executive orders, many of which could impact your organization including:
- Expanding oil and gas development
- Blocking climate investments made under the Inflation Reduction Act and Infrastructure Investment and Jobs Act
- Withdrawing from the Paris Climate Agreement
- Revoking the electric vehicle goal
- Withdrawing offshore wind leases
- Dismantling DEI initiatives within the federal government
- Establishing the United States recognize only two sexes, male and female
- Banning the government from considering environmental justice
The Disconnect Between Policy & the American Public
Despite these harmful actions, ESG policies remain popular. According to a GSG survey…
- 72% of Americans believe companies should be focused on sustainability, (66%) economic equality, (82%) treating their employees fairly, (61%) speaking out on social issues.
- 69% agree that implementing these practices benefits a company’s bottom line.
- 71% want companies to consider more than their shareholders when making decisions.
Navigating the New Landscape
If you’re reading The Goods, your social impact policies likely aren’t going anywhere. Here’s how to prepare for a hostile legislative and regulatory environment.
- Update your messaging. The term “ESG” has become polarizing. Our 2024 ESG Business and Politics Report finds that half of all Americans don’t know what ESG is, while at the same time, more than half of Americans say it’s important for companies to improve their sustainability and speak out about social issues. Use clear, relatable language highlighting the benefits of your efforts for employees and stakeholders.
- Create a crisis scenario plan. In the event your organization does come under fire, whether it be in the form of a Congressional inquiry, litigation or a public relations crisis, it’s best to have a sound plan already in place that empowers your organization to respond quickly and effectively. A crisis plan should identify your response team, protocols, and messaging.
- Monitor the media landscape. Set up monitoring systems for traditional and social media to track key terms and follow reporters covering related issues. Some of our favorites are Lamar Johnson (ESG Dive), Jordan Wohlman (POLITICO), and Saijel Kisan (Bloomberg).
The Threat of Getting Investigated
One of the new executive orders instructs each federal agency to identify up to nine “potential civil compliance investigations of publicly traded corporations, large non-profit corporations or associations, and foundations with assets of $500 million or more.” Additionally, Congress has signaled an appetite for investigating a wide range of organizations including the philanthropic sector.
A new report out from the Democracy Funders Network, supported by Global Strategy Group, outlines how philanthropists, foundations, and nonprofits can defend themselves from politically motivated attacks. Key recommendations include:
- Investing in lobbying, crisis communications, and legal support
- Spotlighting repressive administration tactics to build public support
- Building or joining coalitions of pro-democracy groups and advocates
- Expanding community relationships to constituencies who can speak out when groups and issues come under fire
- Reviewing programs, policies, and procedures to ensure compliance with the law
Read more from Democracy Funders Network in The Chronicle of Philanthropy.
What’s Next
It’s clear that this Administration has a “flood-the-zone” strategy. While organizations take time to process the impact and adjust their operations, litigation is being filed to block many orders, and the new Administration has already walked back several actions due to the chaos and confusion.
This landscape is incredibly dynamic, and things will continue to change hour by hour. GSG will continue to monitor these activities and keep you up to date in the months to come.
